Parliamentary Affairs Minister Venkaiah Naidu has said that the Modi government has agreed to accept the demands raised by the opposition congress Party, to pass key reform goods and services tax (GST) Bill, raising hopes that a political standoff that blocked the measure throughout last year might be resolved. Further he said that the government is ready to start the upcoming Parliament session earlier than scheduled to pass the bill in the Rajya Sabha if the Congress is willing to support it.
With a view to discuss and seek support for the passage of key reforms in the upcoming budget session of Parliament, Naidu met Congress president Sonia Gandhi. Gandhi, however, didn't assure him of her party's support and said that they will discuss among themselves and take a final decision.
In order to garner the Opposition's support for the passage of the GST Bill, Prime Minister Narendra Modi had also met his predecessor Manmohan Singh and Congress president Sonia Gandhi in early December. But his efforts were in vain as the winter session of Parliament got washed out following a controversy in the National Herald case in which Congress leaders Sonia Gandhi and Rahul Gandhi faced allegations of illegal acquisition of property worth Rs 5,000 crore.
The GST bill which aims to replace a string of central and local levies such as excise and octroi with a single tax is a key constituent of the government’s reform agenda that has run into rough weather in Parliament. The Congress party, the original author of the tax reform, has opposed what it calls the 'flawed' version now before Parliament, where it has been able to block a key constitutional enabling amendment in the upper house. It wants the Government to cap the GST rate at less than 20 per cent, scrap a proposed state levy and create an independent mechanism to resolve disputes on revenue sharing between States.
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